Phillips 66 (PSX) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Phillips 66 (PSX) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Phillips 66 indicate an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Phillips 66 is expected to earn $5.34 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 24.3% over the past three months [8].